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GFI (or GFCI) is an acronym for Ground Fault (Circuit) Interruptor. Essentially, it is a current sensor. A GFI outlet or breaker monitors the current flowing through both the hot and neutral wires. If there is a difference between them, that means electricity is leaving the normal circuit and is flowing through something else (probably you). The GFI watches for this difference and shuts off power to the circuit if an imbalance is detected.
This is why a GFI is mandatory for pools, bathrooms, etc.. If you happen to become a conductor because you are wet, the GFI will detect the current flowing through you and shut the power off. A normal breaker will only shut off if your body happens to overload it, which is unlikely.
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